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MANAGERIAL COMMUNICATION

COMMUNICATION: Communication is the activity of conveying meaningful information.

Communication can be perceived as a two way process in which there is an exchange and

progression of thoughts, feelings or ideas towards a mutually accepted goal or direction.

Communication is a process of transferring information from one entity to another.

Communication processes are sign mediated interactions between at least two agents which

share a repertoire of signs and semiotic rules. Communication is commonly defined as " the

imparting or interchange of thoughts, opinions, or information by speech, writing, or signs.

Managerial Communication: Managerial Communications involves gathering important

information from both inside and outside the organization and distributing appropriate

information to others who need it. If you carefully analyze a mangers job it is evident that

Managerial Communication is essential for every Management Function known To Business.

For example, when managers perform the planning function, they gather information, write

letters, memos, and reports, and then meet with other managers to explain the plan. When

managers lead, they communicate to share a vision of what the organization can be and motivate

employees to help achieve it, when managers organize; they gather information about the state of

the organization and communicate a new structure to others. In this light it is safe to conclude

that Managerial Communication is a fundamental part of every managerial activity.

While Managerial Communication is a wide area of study; I will be focusing on two key areas,namely Organizational Communication and Internal Communication. Organizational

Communicationis how people communicate within an organization or the influence of

organizational structures in communicating. Interpersonal Communicationdeals with

interaction between people.

Communication

inBusiness a) Managerial Communication: Strategies for setting and achieving specific

organizational objectives.

b) Organizational Communication: Communication networks and the

communication flow within organizations and an organization communication climate.

c) Human relations & Teamwork:To develop good interpersonal communicationbetween and among those who work together.

d) Sales communication: To produce sales, from media based advertising to telephone

solicitation, to direct mail advertising and direct (face to face) sales.

e) Report Writing: Memos to letters reports (basically long letters that include

headings and other report writing techniques), to complete analytical reports. The

fundamentals of primary and secondary research, technique for data analysis, and

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analytical and presentation graphics.

f) Communication Technology & Electronic Communication: Whether word

processing, page layout and graphic design, electronic mail (email), electronic

conferencing, internet based services, audio or video conferencing or multimedia

presentations, the technology we use to communicate. (IT)

g) International communication (Intercultural Communication): Expectationsand behaviour, to establish business and personal relationships.

Purpose and functions of

communication in Management:

i. Collect informations.

ii. Convey informations and decisions.

iii. Promote interpersonal unity.

In organization Internal Information.

External Information.

Communication Model/ Communication Components/Communication cycle:

Components Model

Context. Stimuli

Sender Encoder. Input The information/ideas

Message. Message Information

Medium. Channel Verbal and non-verbal

Receiver Decoder. Output Receiver gets

Feedback/Response Feedback/Response

Brain Drain or Break

Down

Misunderstanding (Any time)

OBJECTIVESOFCOMMUNICATION(Function of Basic Communication)

a) Human Relations To Promoting Mutual Understanding.

b) Information Wars, Danger, Crisis, Famine, Etc.,

c) Advice Opinions (Subjective)

d) Counseling.

e) Order (Direction)

f) Education &Instruction (Guidance)

g) Suggestions & Complaints

h) Persuasion Feelings and Beliefs. (Influence To Action)

i) Raising Morale & Motivation Mental Health.

j) Empathy.

k) Entertainment - Films, Television, Radio, Drama, Music, Literature, Comedy, Games, Etc.

l) Discussion Viewpoints and Impart New Ideas to Others.

m) Cultural Promotion - Creative Urges.

n) Integration.

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PRINCIPLESOFCOMMUNICATION(Factors of Communications)

a. Clarity of Ideas, Facts, Opinions.

b. Information.

c. Extensiveness.

d. Emphasis on Attention.

e. Consistency.

f. Integration.

g. Informal Organization. (Group, Grapevine)

h. External Communication. (Government, Distributors, Retailers, Customers, Supplier, etc.,)

i. Factors to Promotion.

TYPESOFCOMMUNICATION

Communication Generally

Classified into different

types

1) Verbal/Nonverbal Communication.

2) Oral/written Communication.

3) Formal/Informal.

4) Technological/Non technological.

5) Mediated/Non Mediated.

6) Participatory/Non Participatory.

7) Intra personal/Interpersonal.

8) Focused/Unfocused.

9) Mass Communication/Group Communication.

10) Facilitated Communication.

11) Graphic Communication.

12) Science Communication.13) Nonviolent Communication.

14) Strategic Communication.

15) Superluminal Communication.

16) Based on Organization.

Upward Communication.

Downward Communication.

Horizontal Communication.

Grapevine.

Consensus.

VERBAL: Verbal communication refers to spoken messages that we transmit by producing

sounds. Oral communication generally involves both verbal and non-verbal symbols.

Advantage

Adjustment of message.

Immediate clarifications.

Time.

Future reference.

Speakers preparedness.

Lengthy message.

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Persuasion and control.

Formality.

Cost.

Distortion.

Retaining the message.

NONVERBAL: Nonverbal communication is usually understood as the process of communication

through sending and receiving wordless (mostly visual) messages - i.e., language is not the only

source of communication, there are other means also. Messages can be communicated throughgestures and touch (Haptic communication), by body language or posture, by facial expression

and eye contact

FORMAL/INFORMAL: This differentiation of communication is mainly on the basis of situations.

In situations like public speaking, mass communication, official communication, etc. formal

communication is used. Here, language is used more precisely, and more attention is paid to

grammar. Also we pay attention to our dress, posture, etc. formal communication occurs in the

context of status differences. Informal communication takes place in case of informal and

personal situations. Less attention is paid to structure of language and grammar. Also less

attention is paid to nonverbal behavior like clothing, gait, posture, etc.

Formal communication channels relate to the

structure of the organization.

They include;

1. Reporting relationships and policies.

2. Committee meetings.

3. Bulletin boards.

4. Participation in group events.

5. Internal newsletters.

Informal communication channels are those

that develop through social interaction. They

include

Conversations at break times.

Grapevines.

Consensus.

INTERPERSONAL COMMUNICATION: Interpersonal communication is usually defined by

communication scholars in numerous ways, usually describing participants who are dependent

upon one another and have a shared history. Communication channels, the conceptualization of

media that carry messages from sender to receiver, take two distinct forms: direct and indirect.

INTRAPERSONAL COMMUNICATION: It occurs when an individual sends and receives messages

internally. We spend most of our time thinking. And our thought process is nothing but

intrapersonal communication where one person is sending messages and the same person

receives them. Here we use the central nervous system (CNS) and peripheral nervous system

(PNS) for generation, transmission and receiving of messages. We react to both external and

internal stimuli this way. In addition to our thought process, many times we also talk aloudwith ourselves.

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Theprocessof

Intrapersonalcommunicat

ion

Reception: stimuli are picked up by the sensory organs (PNS) & then sent to the brain.

Selective perception.

Cognitive.

Emotional.

Physiological.

Transmission. Self feedback.

Interference or noise.

MASSCOMMUNICATION: Any mechanical device that multiplies messages and takes it to a large

number of people simultaneously is called mass communication. It is usually understood to

relate to newspaper and magazine publishing, radio, television and film, as these are used bothfor disseminating news and for advertising. Mass communication is a special kind of

communication in which the nature of the audience and the feedback is different from that of

interpersonal communication.

Functions of Mass

Communication

To inform.

To educate

To entertain and

To persuade.

GROUPCOMMUNICATION: is an extension of interpersonal communication where more than twoindividuals are involved in exchange of ideas, skills and interests. Communication in a group,

small or big, serves many goals including collective decision-making, self-expression, increasing

ones effect, elevating ones status and relaxation. Group communication is considered effective

as it provides an opportunity for direct interaction among the members of the group; it helps in

bringing about changes in attitudes and beliefs. Group communication has limitations too, as

group interaction is time consuming and often inefficient, especially in an emergency.

GRAPHIC COMMUNICATION: Graphic communication as the name suggests is communication

through graphics and graphical aids. It is the process of creating, producing, and distributing

material incorporating words and images to convey data, concepts, and emotions.

SCIENCE COMMUNICATION: Science communication generally refers to media aiming to talk

about science with non-scientists. It is sometimes done by professional scientists (then often

dubbed 'outreach' or 'popularization') but has evolved into a professional field in its own right. It

includes science exhibitions, science journalism, and science policy and science media

production, among other things

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STRATEGIC COMMUNICATION: Strategic Communication can mean either communicating a

concept, a process, or data that satisfies a long term strategic goal of an organization by

allowing facilitation of advanced planning, or communicating over long distances usually using

international telecommunications or dedicated global network assets to coordinate actions and

activities of operationally significant commercial, non-commercial and military business or

combat and logistic subunits. It can also mean the related function within an organization,

which handles internal and external communication processes. Strategic communication can

also be used for political warfare.

SUPERLUMINALCOMMUNICATION: Superluminal communication is the term used to describe the

hypothetical process by which one might send information at faster-than-light (FTL) speeds.

NONVIOLENT COMMUNICATION: Nonviolent Communication (NVC) is a way of speaking that

facilitates the flow of communication needed to exchange information and resolve differences

peacefully. It helps us identify our shared needs, encourages us to use language that increases

goodwill, and avoid language that contributes to resentment or lowers self-esteem. Nonviolent

Communication focuses our attention on compassion as our motivation, rather than fear, guilt,

blame, or shame. It emphasizes taking personal responsibility for our choices and improving the

quality of our relationships as our goal. It is effective even when the other person or group is not

familiar with the process.

Based on Organization:

Upward Communication: It is refers to the flow of information from Operation Level to Top

Level within the Organization. (Information, Requests, Reports, Proposals, Feedback,Suggestions and Recommendations) It gives an opportunity to an employee to express his

frustrations of the work situation and helps him to relieve the pressures of the pent-up

emotions, which are associated with their daily problems.

Methods of

Upward

Communicati

on

(Channels)

Meetings.

Counseling.

An Open-Door Policy.

Correspondence.

Reports.

Complaints and Suggestions Boxes. Social Gatherings.

Problems of

Upward

Communicati

on

1) Positive Encouragement. (Native Encouragement) No useful information.

2) Concealing Unfavorable facts.

3) Delay, Distortion (Misrepresentation) and Filtering.

4) Bypassing and Suspicion (Doubt).

5) Poor Listening.

6) Communicating Criticism.

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Telephone calls.

Face-to-face conversations.

Speeches to the employees.

Effective Downward

Communication

1. It should be adequately informed.

2. It should be clear about how much to communicate.

3. Some authority should be delegated to operation levels toshorten the line of communication.

4. Information should be passing down the correct person.

Merits Demerits

Effective communication.

Prevention of errors.

Correction of employees errors.

Generate job satisfaction.

Improve morale

It consolidates the organization.

Delay.

Loss of Information.

Distortion.

Insufficient management.

Unclear message.

Message overload.

Horizontal Communication: its flow between people at the same level. It is important for

promotion understanding and coordination among various people or departments.

Method of horizontal

communication

1. Face to face discussion.

2. Telephonic communication.

3. Periodical meetings.

Merits Demerits

Increase cooperation.

Understanding to achiever the mission.

Physical barriers.

Riva try occurring.

Lock of motivation.

Grapevine: To hear something through the grapevine is to learn of something informally and

unofficially by means of gossip and rumor. The usual implication is that the information was

passed person to person by word of mouth, perhaps in a confidential manner among friends or

colleagues.

Importance 1. A safety value.

2. Organizational solidarity and cohesion.

3. Supplement to other channel.

4. Quick transmission.

5. Feedback.

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LimitationsofGrapevine The grapevine may carry some degree of error in it.

The baseless, imaginary and non-factual messages may prove harmful to the

organization.

Often the employees feed the grapevine with self-serving information. They add to the

facts rather than simply report.

The grapevine often carries incomplete information, which leads to misunderstanding of

the receiver.

The communicator does not take the responsibility of the message.

Sometimes the grapevine spreads the message so swiftly that it causes damage to the

organization.

Merits Demerits

Speedy transformation.

Feedback.

Support to other channel.

Physical satisfaction.

Distortion of information.

May transmit incomplete information.

Travels with destructive swiftness.

The grapevine often clistors.

Types of

Grapevine

1. Single stand: flow like a chain.

2. Gossip: one person tells everybody else.

3. Probability (Random): Information may move from anybody to anybody.

4. Cluster.

Effective

Grapevine

Keep an eye on rumour Managers.

Use it primarily for feedback.

Contradict rumours promptly. Involve the workers in the decision making process.

Consensus: is the process of arriving at agreement through consultation. Consensus is not

unanimity, but dissent is not expressed in the larger interest.

Significance of Consensus

1. The consensus communication projects a good image of the management.

2. The essential image of the management presented through consensus strengthens the

confidence of the employees in their superiors.3. There can be little or no chance for conflict among the employees because the instructions

issued by the directors never conflicts with each other.

4. The consensus is always based on the attitude of mutual respect, which enables the

members to accept and support the views of each other.

5. The members promptly accept the decisions of consensus because they are derived after

mutual consultations.

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6. The process of consensus ultimately leads to an unquestioning acceptance of the authority

of the chief.

7. The trust of the members in their chief helps to avoid the splits and conflicts between the

majority and the oppositions.

Merits Demerits

Decision easy to accept.

Promotes harmony, checks conflict and

splits.

Dissent is often in the name of consensus.

May degenerate into a process of mutual

accommodations.

May project a false image of Management.

MEDIAOFCOMMUNICATION

1. Written Communication.

2. Oral Communication.

3. Visual Communication.

4. Audio Visual Communication.5. Computer based Communication.

Written Communication: Written Communication means communication by means of written

symbols (either printed or handwritten).There are several types of written communication in

business like e-mail message, memos, proposals, reports, letters, bulletins, minutes, orders,

quotations, contracts, forms, enquires etc.

Merits Demerits

Ready Reference.

Legal defense

Promotes uniformity.

Mass Access

Suitable for Distance Communication.

Image Building

Accurate and Unambiguous.

Permanent in Nature.

Facilitates in order to assign

responsibility.

Limited to Literate world.

Time Consuming.

Lot of Paper Work.

Needs Expertise in Expression.

Lack of Immediate Feedback.

Costly than Oral Communication.

More man hours needed.

No immediate clarification.

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Permits Substitutions & Revisions.

EffectiveWrittenCom

munication Draft an outline at the beginning by proper planning.

Focus on the audience, purpose, topic and desired outcome. Simply writing or talking,

without regard to the recipients response, is conducive to creating a gross

misunderstanding George Terry.

Structure the Introduction, Body and Conclusion in a systematic and logical order. Focus on each paragraph.

Understand the readers perception.

Avoid grammatical mistakes.

Use proper vocabulary, punctuations, commas, colons and semi-colons.

Avoid using slang language.

Avoid using you while making any criticism.

Always start with a positive phrase.

Always write the name of the company and the person correctly.

Keep sentences short, clear and concise.

Avoid repetition and too many irrelevant details. Elaborate on the technical language and jargons used.

Effectively use the charts, graphs, diagrams and pictures.

Never express your anger, frustration, irritation and aggression in written communication.

Proof read the document before sending.

Use proper communication channel.

Get a proper feedback.

Continuously update yourself to improve written skills.

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Writing Process

Start GatherFiles, Articles, Financial Statement, Telephone Interviews, Personal Interviews,

WWW, CD-ROMs, Internet Database, Brainstorm, Personal Notes, Etc.,

Organi

zeBatching, Concluding, Heading, Strategic Ordering

FocusSkim only Technique, Nutshell Technique, Teach your Ideas, Elevator

Technique, Price per word Technique, etc.,

DraftOrganize and Focus first, Compose in any order, Avoid Editing, Get a typed

copy, Leave a time gap before editing.

Finish EditEdit for strategy, Edit for Macro issues, Edit for Micro issues, Edit for

Correctness

Oral Communication: communication by word of mouth; "his speech was garbled"; "he uttered

harsh language"; "he recorded the spoken language of the streets". It includes face to face toconversation, over the telephone, radio broadcasts, interviews, presentations, meetings, group

discussions, conferences, seminars, announcements over the address, speeches, etc.,

Merits Demerits

Time saving.

Money saving.

More effective with groups.

Immediate feedback.

Clarification possible.

Can be informal. Speech is a more powerful means of

persuasion and control.

Not possible for distant people in the

absence of mechanical devices.

Unsuitable for lengthy messages.

Messages cannot be retained long time.

No legal validity.

Greater changes of misunderstanding. Not easy to fix responsibility in cast of

misunderstanding.

Effective Oral Communication o Clean Pronunciation.

o Brevity.

o Precision.

o Conviction.

o Legal Sequence.

o Appropriate word choice.

o Avoiding Hackneyed Phrases & Clichs.

o Natural Voice.

o Finding the Right Register.

Visual Communication: Visual communication as the name suggests is communication

through visual aid and is described as the conveyance of ideas and information in forms that

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can be read or looked upon. Visual communication solely relies on vision, and is primarily

presented or expressed with two dimensional images, it includes: signs, typography, drawing,

graphic design, illustration, colour and electronic resources. It also explores the idea that a

visual message accompanying text has a greater power to inform, educate, or persuade a person

or audience.

Merits Demerits

Its clear to everybody.

Easy to convey Message.

Pictures, posture etc., are economized.

Motivates the viewers.

Only elementary and single data.

Drawing picture, cartoons are difficult.

Spot correction is not possible.

Expert

Audiovisual Communication: Audiovisual communication as the name suggests is

communication through audiovisual aid and is described as the conveyance of ideas and

information in forms that can be read and hear the information. It encompasses television and

cinema films that combine the visual impact with narration. It is most suitable for masscommunication.

Merits Demerits

It is clear to everyone.

Easy to convey message.

Motivates viewers.

Time management.

Costlier.

Time period.

Misunderstand.

Computer based Communication (CC): Computer communication is defined as any

communicative transaction that occurs through the use of two or more computers. While theterm has traditionally referred to those communications that occur via computer-mediated

formats (e.g., instant messages, e-mails, chat rooms), it has also been applied to other forms of

text-based interaction such as text messaging. Research on CC focuses largely on the social

effects of different computer-supported communication technologies. Many recent studies

involve Internet-based social networking supported by social software.

Merits Demerits

The quickest means of communication.

The barrier of space conquered.

Video conferencing can replaced meetings. Storage and retrieval of permanent record has become easier.

WWW (World Wide Web) better consumer service, better

dissemination of information.

Uncertain legal

validity.

Fear of undesirableleakage.

Virus malady.

BARRIERSOFCOMMUNICATION: Planning, preparation and practice of communication will be

incomplete and unsuccessful unless one identifies and understands the barriers of

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communication. These barriers are physical, sociological and psychological obstacles that

interfere with the planning, organization, transmission and understanding of the message.

1) Language Barrier a. Lack of common language.

b. Semantic Barrier.

c. Poor vocabulary.d. Poor Grammar and Punctuation.

e. Roundabout Verbiage

2) Physical Barriers 1) Noise.

2) Time.

3) Distance.

4) Age.

5) Sex.

6) Environmental disturbances.

7) Health issues.

3) Perceptual barriers a. Lack of common experience.

b. LNGUISTIC different language and vocabulary

c. Lack of knowledge of any language.

d. Overuse of abstraction.

e. From receiver side.

i. Interrupting the speaker.

ii. Asking too many questions, for the sake of probing.

f. From sender side.

i. Unclear message.

ii. Incomplete sentences.

iii. No clarifications.

4) Emotional barriers a) Poor pronunciation.

b) Confused thinking.

c) Communication overload.

d) Unnecessary repetitions.

e) Attitude creates social evils.

5) Cultural barriers i. Ethnic (national), religious, and social differences.

ii. Traditions barring people of different cultures from minglingtogether.

iii. Barriers to membership of age up.

6) Interpersonal

barriers

a) Withdrawal is an absence of interpersonal contact. It is both

refusals to be in touch and time alone.

b) Rituals are meaningless, repetitive routines devoid of real contact.

c) Pastimes fill up time with others in social but superficial activities.

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d) Working activities are those tasks which follow the rules and

procedures of contact but no more.

e) Games are subtle, manipulative interactions which are about

winning and losing. They include rackets and Stamps.

f) Closeness is the aim of interpersonal contact where there is a high

level of honesty and acceptance of yourself and others.

7) Social-psychological

Barriers

a. Status barrier.

b. Attitudes and values.

c. Different perception of reality,

d. Inference.

e. Abstracting.

f. Closed-Mindedness.

g. Distortion, filtering and editing.

h. Bad listening.

i. Emotions.

j. Resistance to change.

8) Gender barriers A. Man.

Prefer conversation for rapport buildings.

Want empathy, nor solutions.

Are more likely to compliment.

Emphasize politeness.

More conciliatory.

B. Woman.

Talks as a means to preserve independence and status by

displaying knowledge and skill.

Workout problems on an individualized basis.

Are more directives in conversations.

Call attention to their accomplishments.

Tend to dominate discussions during meetings.

9) Mechanical barriers 1) We use different instruments and machines for communicating our

messages. Very often, the selected medium itself becomes a

barrier.

2) Absence of means of communication.

3) Faculty instruments.4) Interruptions on radio and television.

Types of Mechanical barriers

Non availability of proper machines.

Presence of defective machines.

Interruption.

Power failures.

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10) Organizational

Barriers

1. Rules and regulations.

2. Status and position.

3. Complex organization.

4. Facilities.

5. Lack of chain of command.6. Bureaucratic delay.

7. Political manipulations.

8. Class confects.

11) Organizational

climate barriers

a. Fear.

i. Fear of being misinterpreted.

ii. Fear of distortion by gossip.

iii. Fear of exposing oneself to criticism.

iv. Fear of getting fired.

b. Poor or ego centered supervision.

c. Insincerity and lack of confidence.

2. Barriers of communication cycle.

Encoding Transmitting Decoding Responding

Lack of sensitivity to

Receiver.

Lack of

communication skills.

Insufficient knowledge

of the subject. Information overload.

Emotional

interference.

Physical

distractions.

Conflicting

messages.

Long

communicationchain.

Channel barriers.

Lack of interest.

Lack of

knowledge.

Lack of

communication

skills. Emotional

distractions.

Physical

distractions.

No provision

for feedback.

Overcome

Barriers

1. Learn to use feedback well.

2. Be sensitive to receivers point of view.

3. Listen to understand.

4. Use direct, simple language/at least use language appropriate to the receiver.

5. Learn to use supportive communications, not defensive communications.

Effective Communication: is a two-way process - sending the right message, that is also

being correctly received and understood by the other persons. (Same sense).

Appropriate communication style.

Audience centered approach.

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Understanding of intercultural communication.

Commitment of ethical communication.

Proficiency in communication technology.

Control over the flow of communication.

Reducing the number of messages.

Principles of Effective

Communication

1. Maintain eye contact.

2. Be aware of body position and language.

3. Use language the customer understands.

4. Use the customers proper name.

5. Be honest.

6. Listen.

7 Cs of Effective Communication a) Clarity.

b) Completeness.

c) Coherence.d) Conciseness.

e) Credibility.

f) Correctness.

g) Continuity.

Towards effective communication in Organizational:

1. Enterprises, into must flow faster.

2. Short stoppage on fast moving production line costly lost output.

3. Production problems communicated quickly for corrective action.

4. Into increased frequently causing into overload.

5. Need more relevant information.

6. Necessary to determine what kind of into massager need to have for effective decision making.

7. Getting information from managers superiors and subordinated from depts. and people

elsewhere organization.

COMMANDMENTSOFGOODCOMMUNICATION

Seek to clarify your ideas before communicating.

Examine the true purpose of each communication.

Consider the total physical and human setting whenever you communicate.

Consult with others in planning communication channels.

Be mindful, while you communicate, of the overtones as well as the basic content your message.

Take the opportunity when it arises to convey something of value or help to the receiver.

Follow up your communication.

Communicate for tomorrow as well as today.

Be sure your actions support your communication.

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Seek not only to be understood but to understand as well. Learn to listen with the inner car to

known the inner man.

COMMERCIALTERMS& ABBREVIATIONS

Abandonment : The act of relinquishing claim or right to property.

Acceptance : A draft calling for payment at a future date which the drawee has agreed to pay

by signing "Accepted" on the draft.

An unconditional assent to an offer; or an assent to an offer conditioned on only

minor changes that do not affect any material terms of the offer;

An agreement to purchase goods on specified terms.

Receipt of a shipment by a consignee thus terminating the liability of the carrier

for delivery.

Account Party : Same as Applicant, the party at whose request a bank issues a letter of credit.

Ad initio : From the Beginning.

Ad valorem : According to value.

Advised Credit : A letter of credit whose terms and conditions have been notified to the beneficiaryby an advising bank on behalf of the issuing bank. The advising bank does not

thereby commit itself to pay or guarantee the payment of the letter of credit.

Advising Bank : An 'advising bank' is a correspondent of a bank which issues a letter of credit,

and, on behalf of the issuing bank, the advising bank notifies the beneficiary of

the terms of the credit, without engagement on its part to pay or guarantee the

credit.

Allonge : A piece of paper attached to a bill of exchange for further endorsement.

Approx.

(Approximately)

: Same as "about" and "circa"; terms which when used in a letter of credit are

construed to allow a difference not to exceed 10% more or 10% less than the

monetary amount, or the quantity, or the unit price.

Assessment :a) The valuation, or determination as to value, of property.

b) The act of apportioning amounts to be paid.

c) An amount assessed or charged, for example: taxes or dues.

Annuity : A sum of money payable annually.

At par : At face value.

Back Haul : The return of a carrier to the original point or area from which its journey began.

If a carrier can obtain cargo to carry on the back haul route that cargo may often

obtain a favorable freight rate because otherwise the carrier would have to return

empty.

Balance Of

Payments

: A statement summarizing all the economic and financial transactions between

companies, banks, private households and public authorities of one nation with

those of the other nations of the world over a specific time period. It includes

merchandise trade payments, payments and receipts on account of shippingservices, tourist services, financial services, government expenditures, short and

long term capital movements, interest and dividends, gold movements, etc.

Balance of Trade : The difference in value between a country's total imports and exports over a

specific time period.

Bank Note : A promissory note having the appearance of currency, issued by a bank or banker

authorized to do so, payable to bearer on demand, and intended to circulate as

money.

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Banker's Bank : A bank that is established by mutual consent by independent and unaffiliated

banks to provide a clearinghouse for financial transactions.

Barter : Trade of goods or services without the use of money.

Bill :a. A "Bill of Exchange" or "Draft" (same thing).

b. A written statement of contract terms.

The word "Bill" has many other international trade connotations - "Invoice" etc.

Bill of Credit : A written authority from one person to another, empowering the recipient of the

document to receive money from the correspondents of the issuer abroad. (The

usual issuer is a bank)

Bill of Exchange : Draft or Bill.

Bona Fide : In or with good faith, honesty, and sincerity.

Bond :1) A written undertaking to perform or refrain from performing specified acts,

usually guaranteed by a third party.

2) A security evidencing debt, specifying the date payment is due and usually

specifying a rate of interest and its dates of periodic payment.

Bonded Goods : Goods are a bonded warehouse.

Bonded Warehouse : An approved private warehouse used for the storage of goods until duties or taxes

are paid and the goods are properly released by Customs. Bonds must be postedby the warehouse proprietor and by the importer to indemnify the government if

the goods are released improperly. (USA)

Booking : The making of arrangements for a shipment with the representatives of a vessel

or airline.

Box :1) Term referring to a trailer, semi-trailer, or container used in transportation.

2) A type of package of wood, cardboard, metal, plastic or other material.

Call :1) A demand for early repayment of an obligation, or for the performance of a

specific act under a contract.

2) A demand for the payment of money.

3) The act of redeeming a bond earlier than the full term.

4) Short for "Call Option," a contract giving the holder the right to receive from the

issuer a specified amount of a security at a specified price on or before a certain

date.

5) Short for "Margin Call" - a call by a future or an options exchange, or by a broker

to its clients, for additional collateral to that previously posted when the futures,

options, or securities were purchased without posting their full value.

Cargo : Merchandise hauled by transportation lines.

Carrier : A legal entity that is in the business of transporting passengers or goods for hire.

Certification : Official proof of authenticity.

The formal assertion of some fact in writing.

Clearance :1) The completion of governmental requirements so that a carrier may arrive in a

port and unlade cargo and passengers, or may lade cargo and passengers and

depart for a foreign destination.2) The accomplishment of the customs formalities necessary to allow goods to be

imported or to be exported.

Consular Invoice : An invoice covering a shipment of goods, usually required to be certified by the

counsel of the country for which the merchandise is destined. It may be required

to be on a special form and be subject to the payment of special fees.

Copyright : An authors exclusive right to publish his work.

Date Draft : A draft which matures a specified number of days after the date it is issued.

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Dock :1. A loading or unloading platform at an industrial location or carrier terminal.

2. A ship's berth or wharf.

Drawback : The right to refund of import duty paid when the goods are re exported.

Duty : A tax levied by a government on the import or export of goods.

Easement : A right to use another person's property.

Earnest Money :Money to be deposited along with a tender.

Embargo : A government prohibition of exports or imports with respect to specific products

or specific foreign countries.

Flag : A reference to the country of registry of a vessel.

Free Port : An area where imported goods may be brought without payment of duties.

Freight :1) All merchandise, goods, products, or commodities shipped by rail, air, road, or

water, other than baggage, express mail, or regular mail.

2) The compensation paid for the transport of goods.

General Agreement

On Tariffs And

Trade (GATT)

: Both a multilateral trade agreement aimed at expanding international trade and

the organization which oversees the agreement. The main goals of GATT are to

liberalize world trade and place it on a secure basis thereby contributing to

economic growth and development and the welfare of the world's people. The

organization, GATT, has been succeeded by the World Trade Organization(WTO).

Tare Weight : The weight of a container and/or packing materials, but without the goods being

shipped. The gross weight of a shipment less the net weight of the goods being

shipped. (In other words, the weight of the packing.)

Visa : A stamp, seal or endorsement on a document validating it for a particular use

such as on a passport admitting the holder to a country, or on a license issued by

the government of an exporting country for the export to a specific importing

country of a certain quantity of a quota controlled commodity subject to a

voluntary export restriction or a voluntary restraint agreement.

ABBREVIATIONS

@ : At the rate of.

a.a.r : Against all risks.

a/c. : Account Current,

a/c., acct. : Account.

A/d. : After date.

A/s : At sight.

A/S : Account Sales.

Ad.Lib. : Ad Libitum, at pleasure.

Advt. : Advertisement.

Amt. : Amount.

ASAP : as soon as possible.Attn. : (for the) Attention (of)

B/E : Bill of Exchange.

B/L : Bill of Lading.

C. and D. : Collection and Delivery.

C/N : Credit Note.

c/o : Care of.

Carr. pd : Carriage Paid.

cc : Carbon Copy.

cf. : Compare.

cfr. : Cost and freight.

cif : Cost, Insurance, Freight.

cip : Carriage and Insurance Paid to.

co. : Company

cod : Cash on Delivery.

Comn. : Commission.

Corp. : Corporation.

cpt. : Carriage Paid to.

cr : Credit.cwo. : Cash with Order.

D/A : Documents Against Acceptance.

D/D : Demand Draft.

D/P : Document against payment.

DBA : Doing business as.

ddp : Delivery Duty Paid.

ddu : Delivery Duty unpaid.

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Dept. : Department.

des : Delivery ex ship.

dis. : District.

DN : Debit Note.

E : East

E.&O.E : Errors and Omissions Excepted.

e.g : For example.

ea : each.

Encl.

[enc(s)]

: Enclosure (s)

Esq. : Esquire.

EXW : Ex works.

fcp. : Foolscap.

fo. : Folio.

fob : Free on board.

For : Free on rail.

FY : Fiscal year.

FYI : For your information.

Gen. : General.

Gov. : Governor.

Govt. : Government.

H.P : Horse power

Hon. : Honorable.

i.e : That is.

i.e. : Id eit (that is)

Ibid. : Ibidem (in the same place)

Inc : Incorporated

Inc. : Incorporated.

L/C. : Letter of Credit.

Lt. : Lieutenant.Ltd : Limited.

M.A : Master of Arts.

M.D : Doctor of Medicine.

M.S : Master of Science

mdse : Merchandise.

Mfg : Manufacturing.

Mgr. : Manager.

Mss. : Manuscripts.

N : North.

o.k. : All correct.

p&p : Postage and Packing.

p.p : on behalf of p.p : Pages.

P.S. : Postscript.

P/A : Power of Attorney.

Ph.D : Doctor of Philosophy.

pto : Please turn over.

Pvt. : Private

qtr : Quarter.

R.N : Registered Nurse

re : With reference to, regarding.

Rev. : Reverend

RRP : Recommended retail price

S : South

SAE : Stamped Addresses envelope

sec. Secretary

Sgt. : Sergeant

Sr. : Senior

St. : Saint

Ste. Saint (feminine)

Treas. : Treasuer

V.P : Vice President

V.P.P : Value Payable by Post.

VAT : Value Added Tax.

viz. : Videlicet nam ly.

W. : West

Y.A.R : York Ant west Rules of Insurance.

ZIP : Zone of Improved Delivery.

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CORRESPONDENCE:

Correspondence may refer to: In general usage, non-concurrent, remote communication

between people, including letters, email, newsgroups, Internet forums, blogs.,

Importance of Business Correspondence a) Help in maintaining proper relationship.

b) Inexpensive and convenient mode.

c) Create and maintain goodwill.

d) Serves as evidence.

e) Help in expansion of business.

Letter: A message that attempts to influence its recipient to take some action or attitude

desired by the sender Rober L. Shurter.

Purposeof letter

It enables business arrangement to be made without the need for the parties to meet. It enables both parties to have a permanent record of these arrangements.

It conveys information /asks questions.

Major

use

of letter

1) To handle routine matters,

2) To sell products and services.

3) To establish credit and collect debts.

4) To adjust complaints, claims and misunderstanding.

5) To win and hold goodwill.

12 for better letter writings: (style and word choice the writing will clear and persuasive)

a) Present your best self. (never write a letter your angry)b) Write in a clear, conversational style.

c) Be concise. (point out)

d) Be consistent. (uniformity)

e) Use jargon sparingly (Language carefully).

f) Avoid big words.

g) Prefer the specific to the general.

h) Break up your writing into short sections.

i) Use visuals.

j) Use the active voice.

k) Organization.l) Length.

Standard Parts of the

Letters

1) Heading Letterhead & Date

2) Inside Address.

Courtesy title.

Name.

Executive or Professional Title.

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3) Salutation.

4) Body.

5) Complimentary Close.

6) Signature area.

7) Reference section.

Sample formats: There are several different formats you can choose from, depending on your

needs.

Block Format: A formal letter with all elements flush left, it includes a heading, inside

address, salutation, body, close, and signature. Spacing between the elements is shown in here.

XYZ Company,

Trichy.

Jan 9 2010.

ToMr. Rajan,

PQR Company,

Thanjavur.

Dear/Mr./Ms. Rajan,

Re: Cancellation of rush order.

Shortly after I transmitted the rush orders for three sets of Doe downhill skis and four sets of

bindings, I received and accepted the necessary items. Please do not duplicate this shipment. Please

cancel purchase order #1234-5. The original order follows, so that you may cancel it more easily.

Purchase order 1234-5 (promotional)

Doe Wedges downhill skis, two pairs, 185 cm

Doe Wedges downhill skis, one pair, 175 cm

Doe Foot Binders downhill ski bindings, four sets

Again, please do not ship these items, as the necessary equipment has already arrived. No charge

need be made to our account. I apologize for the confusion. Thank you.

Yours sincerely,

H. Jones,

Manager

Ref:

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Semi Block or Modified Block format: similar to block format, but with more indenting to

make the copy easier to read. Paragraphs are indented five spaces at the beginning instead of

flush left. The close and salutation are to the right of page instead of the left.

From

XYZ Company,

Trichy.

Jan 9 2010.

To

Mr. Rajan,

PQR Company,

Thanjavur.

Dear/Mr./Ms. Rajan,

I am filing a claim on my auto insurance to cover the cost of repairing the damage that the

recent storm caused to my sports car. The car was parked under a carport, where it was safe from

the hail, but the wind brought the carport roof down, causing extensive damage to the top and hood

of the car.

I am enclosing three repair estimates. They range from a low of Rs. 2,746.00 to Rs.3,468.00.My policy, #55555, has a Rs. 400.00 deductible. Thank you for your assistance. I am eager to have

repairs completed as soon as possible.

Yours truly,

H. Jones,

Manager

BUSINESS ENQUIRESAND REPLIES: enquire about the product, other information. (Credit

information)

Acknowledging application for credit and requesting the customer to give credit

references.

Letters to the trade references suggested, asking for credit rating of the customers.

Letters from the references giving the credit information.

Letters to customers (giving or refusing credit)

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Example: 1

Mr. John Doe recently applied for credit with our firm and listed you as a credit reference. We

would appreciate your completing the enclosed form so that we may evaluate your experience

with him. Your responses will remain confidential. Thank you for your prompt reply.

Example: 2

I appreciated the opportunity to get acquainted with you at the spring linguistics conference in

Springfield. Thank you for sending me a copy of your recent paper.

Recent financial problems in our state are resulting in the board of regents' elimination of

programs they consider to be too costly. It appears that our department will be severely affected,

so I am looking for another position in linguistic theory. I have a good publication record in

phonology and can teach both graduate and undergraduate classes in phonology and general

linguistics. During the past five years I have chaired seven doctoral and ten master's

committees. I believe I can make a valuable contribution to any linguistics program.

I am enclosing a copy of my resume for your information. If you become aware of any positions

for which I may apply, I would sincerely appreciate a note, call, or e-mail message.

REPLY LETTERS: A reply letter is usually a response to the communication that you have

received from a person or business. When replying to a letter or inquiry from clients, associates,

customers or colleagues, it is important that it is in a formal format. Written communication

may very well be the first and possibly only correspondence between you and the original sender

and this makes a good impression crucial. A reply letter should begin by making reference to

the original letter received. It should utilize an opening line, such as "In reference to your letter

of (date)" or "Thank you for your letter/email of (date)." It should then mention key points

discussed in letter received. This helps to remind the recipient you understood his or her

message and understand his or her position. Never use first names unless you are friends or

colleagues and your first name was used in the original letter. Then address the question,

inquiry or complaint that was in the received letter. If you are unable to answer the question,

then direct the person to someone who does have the answers. Offer your assistance to get the

situation resolved as quickly as possible.

Acknowledging receipt of an enquiry/request

- Thank you for your letter of regarding / concerning / in connection with

- I refer to your enquiry about / relating to

- I have received your letter of requesting information about

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2) The quantity desired.

3) Stock or catalogue numbers.

4) Price per unit.

5) Total price.

6) Method of payment.

It may also contain additional information 7) Delivery date and method of transport.8) F.O.B (Free on Board) destination.

9) F.O.R (Free on rails)

10) F.A.S (Free Alongside Ship)

11) C.I.F (Cost, insurance, freight)

12) Franco.

Essential

details

Full details and catalogue numbers.

Forwarding information.

Confirming terms of payment.

Example: 1

Thank you for your May 15 telephone order for 475 TV/VCR coaxial cables. Delivery of our

catalog items generally takes less than a week. Larger orders such as yours may take two to

three weeks. We are pleased to notify you, however, that your large order qualifies you for our

new 20% bulk discount, applied to all orders over $200. (As you will see on the accompanying

invoice, we have already deducted your discount from the total price of your order.)

Beginning in July and August, Doe's will open thirty-seven new regional outlets or showrooms

nationwide. We look forward to becoming your neighbor and invite you to visit the outlet or

showroom opening soon in your area.

After nineteen years in the business, our unmatched reputation for service seems to speak for

itself. However, while many customers have heard about our excellent warranty, fewer know

about our lifetime service contract on large electronic appliances. We invite you to glance at the

enclosed flier for more details.

Again, thank you for turning to Doe's for your electronic supplies.

Example: 2

After a long day at the office, no one feels like spending a lot of time cooking, but you can't

neglect your family's nutrition! Don't despair! We have a recipe collection featuring deliciouslow-fat dinners that includes techniques for cooking poultry, fish, beef, breads, vegetables and

desserts in less than thirty minutes. This fantastic collection is now available to you.

Enclosed you will find our "fast and light" cooking brochure and five free recipes. You will notice

that each recipe card includes a beautiful color photo of the prepared dish. Each recipe is given

in an easy step-by-step format to help you achieve flawless results every time. You will be

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amazed at how quickly and easily you can prepare a nutritious meal that your family will love.

Just look through our brochure and decide which series of recipes suits your family's taste best.

Then call our toll-free number to place your order. It's that simple.

EXECUTIONANDCANCELLATION: Letters of cancellation are generally classified as business

correspondence. As such, we want to be very specific as to what we say in them. There should be

no room for misunderstanding, and it is important to state our case concisely and clearly.

Letters of cancellation are written for a variety of things, such as canceling a cable service, a

magazine subscription, or an insurance policy. The case should be stated in as few words as

possible, including the actions we expect to be taken because of the letter. Ask the recipient to

confirm receipt of the letter at their earliest convenience.

Example: 1

Im afraid I will not be able to make it to our meeting on Wednesday at 3:00 PM as I have

previously arranged to meet with our customer, Mr. Smith, at that time. Since I would very

much like to attend our meeting, please let me know whether rescheduling it is possible. I am

available on Thursday and Friday, anytime after 1:00 PM.

Im sorry for any inconvenience this may have caused.

Example: 2

It has come to my attention that your company representatives have an appointment to meet

with our engineers on Saturday, July 1. There must have been a misunderstanding as we have

already contracted with another company to take care of safety issues. Our current contract

runs for two more years, after which time we will be pleased to reopen discussions with your

firm. I apologize for any inconvenience this may have caused you.

Example: 3

Please cancel my order for a set of encyclopedias. Enclosed is a copy of the order dated March

13. The cost is too much for my family at this time, so I am exercising my right of cancellation

within the three-day period as stated on the order form. I have stopped payment on my check

for $300, which I gave to your salesman, John Doe. I am sorry for any inconvenience this

cancellation may cause.

Example: 4

Please cancel my order for blanket seat covers. I wanted to give them to my husband for a

birthday present, but he has already purchased a set himself. My order number is 12345. Since

I ordered the seat covers on approval, I understand that I will not be billed for them. Thank you

for your patience.

CLAIMS, COMPLAINTSANDADJUSTMENTS

Claims: is based on a right or support right.

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Complaints: a statement of dissatisfaction that may not be justified.

Written claims and complaints should be clear, concise and reasonable. The writer should

describe the difficulty or trouble and state the adjustment he is seeking. The statement should

be exact and should not be sarcastic.

Adjustments: The purpose of the favourable adjustment letter is to leave the reader with a

positive attitude toward the firm and to build customer goodwill.

Examples:

o Complaint re non delivery.

o Complaint of delivery of wrong goods.

o Complaint concerning the quality of the goods supplied.

o Complaint about the damaged condition of the goods supplied.

o Complaint regarding failure of machine supplied.

o Complaint about the negligent execution of an order.

Claims Example: 1

Last Saturday I visited your showroom in Springfield and ordered an oak desk and two

matching three-drawer filing cabinets for my study. When I arrived home this evening, I found

the furniture had been delivered in my absence, but the filing cabinets were the four-drawer

style. Unfortunately, I can use only the three-drawer style because I lack room for anything

higher.

I will appreciate having these cabinets picked up and exchanged for the ones I ordered as soon

as possible. Please call to arrange a time when I will be home. I trust this matter can be

resolved very quickly, so I can get my files organized soon.

Claims Example: 2

I have just received your letter informing me that my insurance policy will not cover my

daughter's surgery because you consider the surgery to be "elective" and we did not obtain

authorization in advance. It never entered my mind that anyone would consider surgery that

would prevent her paralysis and eventual death by suffocation to be "elective." Surely someone

made a mistake in writing us this letter, or in defining what is "elective."

I trust you have copies of her medical records in your possession. If not, I will have the

neurosurgeon send them to you. I request that you review her case to see that her condition

clearly was "life-threatening" and therefore not "elective."

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She now has a chance to lead a relatively normal life, for which we are grateful. To say we have

no claim to insurance coverage for her surgery is to add severe insult to injury. I am confident

that you will agree once you have seen the documentation. I will await your response before

taking other action.

Complaint example: 1

Last Saturday I visited your showroom in Springfield and ordered an oak desk and two

matching three-drawer filing cabinets for my study. When I arrived home this evening, I found

the furniture had been delivered in my absence, but the filing cabinets were the four-drawer

style. Unfortunately, I can use only the three-drawer style because I lack room for anything

higher.

I will appreciate having these cabinets picked up and exchanged for the ones I ordered as soon

as possible. Please call to arrange a time when I will be home. I trust this matter can be

resolved very quickly, so I can get my files organized soon.

Complaint Example: 2

I have just received your letter informing me that my insurance policy will not cover my

daughter's surgery because you consider the surgery to be "elective" and we did not obtain

authorization in advance. It never entered my mind that anyone would consider surgery that

would prevent her paralysis and eventual death by suffocation to be "elective." Surely someone

made a mistake in writing us this letter, or in defining what is "elective."

I trust you have copies of her medical records in your possession. If not, I will have the

neurosurgeon send them to you. I request that you review her case to see that her condition

clearly was "life-threatening" and therefore not "elective."

She now has a chance to lead a relatively normal life, for which we are grateful. To say we have

no claim to insurance coverage for her surgery is to add severe insult to injury. I am confident

that you will agree once you have seen the documentation. I will await your response before

taking other action.

Adjustments example:

We are very sorry that your toaster does not function as you expected. Before we ship any

toaster, we double-check every function, so your problem may be one you can solve quite easily.

When the bread does not go down, you can usually correct the problem by rotating the screw on

the bottom of the toaster a turn or two to the right. If that adjustment does not solve the

problem, simply return the toaster to our nearest outlet to receive a replacement or a refund.

Your Doe toaster should give you many years of trouble-free service.

COLLECTIONLETTERS: Collection letter is to motivate the customer to pay and also keep

his goodwill toward the company. Most of the time main purpose is collection the money,

keeping goodwill become secondary.

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Collection appeals: Collection letters should persuade the customer to pay by using either

positive or negative appeals. The positive appeals of cooperation, fair play and pride must be

used until it, appears that the customer does not recognize their value.

Collection Stages First Reminder.

Follow up.

Change of Tactics.

The last resort.

Example: 1

We acknowledge receiving your check #123 for $100,000 as the final payment on account #1234.

Thank you for remitting this overdue balance.

Please take careful note of our continuing policy to charge a 15% penalty on overdue accounts. If

you have any questions regarding your account, our conditions of credit, or any of the services

we offer, please call us toll-free at the 800 number shown above.

We look forward to serving you again in the future.

Example: 2

We are disappointed you have not taken care of your account with our company. You now have

two options: Forward your payment to our office by July 15, or become a party in a legal action.

A court judgment may add court costs to your obligation. A judgment against you will also

damage your credit record.

SALESLETTER: It is creates goodwill of the company. Sell the image of the writer. It can be

classified in to direct sales letter and indirect sales letter.

AIDA Formula is Main on Sales letter. (Attention, Interest, Desire, Action)

The sales letters should gain attention, arouse and hold interest awaken a desire to own to lead

to the action suggestion in the letter.

1) Direct Sales letter: have the specific objective of selling goods or services by mail.

It should be persuasion. To seek to persuasion reader in terms of his own interests, stimulate

his desire and induce him to buy the goods offered. The opening must be leading the reader to

the next paragraph and not him dump the letter in the WPB. (Waste Paper Basket)

Letter should be o Complete facts. (product/services)

o Anticipating.

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o Answering.

o Guarantees/ discounts/ bonuses.

o Warning about limited stocks.

It support by the brochures, pictures postage paid orders forms.

The elements of a good sales

letter

Arouse and hold interest.

Create a desire for the product/service. Convince the reader about the products capacity to satisfy

him.

Induce him to buy or at least make an enquiry about the

product/service.

Guidelines Differentiation. (Competitors)

Themes. (point of view)

Opening paragraph induce to write.

Conclude with request for immediate action.

Example: 1Eliminate the hassle of saving credit card receipts with a corporate card from Doe. With a Doe

Credit Card, you receive monthly statements of all your purchases, plus a year-end summary.

Convenience. Tax savings. Easy records.

Doe Credit Card has it all--plus a super low introductory interest rate.

If saving your business receipts drives you crazy, Doe Credit Card is for you. Try the card and

see why thousands of customers have thrown away their paper receipts in favor of this tracking

service. Shouldn't you, too?

Just fill out the enclosed application or call us at: 555-5555.

Example: 2

Have you checked out college costs for your children lately?

We have an Executive Desk Set we'd like to give you FREE, just for finding out how Doe Life

Insurance can help pay for your children's higher education.

Indicators confirm that college costs will continue to rise much faster than inflation. Imagine

how expensive college will be when your children are ready to go. Many people, even families

with two incomes, find it difficult to meet the costs without planning.

It is possible to give your children the college education you want for them without spending a

fortune or scrimping. You can help your son or daughter realize their dreams with a life

insurance policy that builds up tax-deferred cash values that you can access as loans to help:

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* Furnish funds for a child's education

* Provide you with greater peace of mind

So stop wondering! And stop worrying!

Doe Life Insurance has a variety of competitive life insurance products. Call us or return the

coupon below. Find out how you can put financial strength of Doe Life Insurance to work for

you...to protect the dreams you have for your children.

P.S. If you have any questions, please feel free to contact us at 555-5555.

2) Indirect Sales Letter: aim to building goodwill. (Follow ups) it strengthens friendships

and business relationships.

Example: 1

Come and celebrate with us on the 25th anniversary of our opening! Doe Stationers have served

the Springfield community since June, 1972, when John Doe first sold pens and envelopes out of

the kiosk on Main Street. Since that time we have moved to a beautiful retail space in the

Springfield Plaza building, and our business has become the most exclusive stationer's in the

state.

The month of June will be a month of celebration at Doe's. We are celebrating with sales on all

fine pens and papers, and there will be a drawing for a special edition gold Doe Signature

fountain pen valued at $685.00. We couldn't have made it 25 years without our loyal clientele,

and we hope to serve you even better during the next 25!

CIRCULARLETTERS

The information is being conveyed to a large number of persons. It is usual to send uniform

letters, printed or cyclostyled to each one of them. A change in the name of the organization,

introduction of a new product, conversion of partnership into a limited company, etc., opening of

a new branch are all occasions which give rise to announcement to be made in the form of

circular letters.

Types examples:

o Letter conveying the admission of a partner.

o Letter conveying conversation of partnership into a company.

o Letter announcing retirement of a partner.

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o A letter announcing obtaining of an agency.

o Opening of new departments, premises or branches.

o Letter announcing expansion of existing premises.

o Letter announcing moving to larger premises.

o Letter announcing the opening of a new branch.

o Letter opening a new retail grocery store.

o Letter announcing the publications of new journal.

Example:

You are invited to help us celebrate 20 years of automotive service to the residents of Monroe

County. We are happy to be the number one dealer in both sales and service for the State of

Kansas. It's something we have worked hard to accomplish. Please drop in at 1600 Main Street

during the month of June to enjoy summer refreshments and see the latest models. While you

are there, remember to register for our big July giveaway.

AGENCYCORRESPONDENCE:

Agency may refer to:

Agency (country subdivision)

Agency (law), refers to a person who acts on behalf of another person.

Agency (sociology), the ability of social actors to make independent choices.

Advertising agency, a service business dedicated to creating, planning and handling

advertising for its clients.

Employment agency, a business that serves as a representative, acting on behalf of

another.

Government agency, a department of a local or national government responsible for the

oversight and administration of a specific function.

International agency, an inter-governmental body.

News agency.

Moral agency, capacity for making moral judgments.

Structure and agency, ability of an actor to organize future situations and resource

distribution.

The person appointing the agent is called the principal. The contract of agency must specify:

1. The powers of the agent.

2. The area of his operations as agent.

3. The duration of the agency.

4. The remuneration to the agents for his services usually in the form of commission.

5. Any special term of the appointment of the agent.

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Kinds of agents:

Commission agents: an agent appointed to buy or sell on behalf of a principal for a

commission proportionate to the value of goods.

Del credere agent: an agent who guarantees the sale proceeds to the principal, when the

sales include credit sales. Is calling a de credere agent. This commission agent or

consignee assumes the risk of bad debts for which he is paid an extra commission called

del credere commission.

Factor: here is a merecantile agent who assumes title to the goods. He need not disclose

the name of the principal to third parties. He can sell and buy in his own name. He has

a right of lion upon the goods for the commission due to him.

Broker: A broker is a mercantile agent who brings about a contract between the

prospective buyer and the prospective seller. Once the contract is entered into between

the seller and buyer, the brokers services come to an end.

Auctioneer: An agent who sells goods of another for commission by calling for bids in

auctions is a auctioneer.

Clearing and /or forwarding agents: a clearing agent under takes to clear the goods

imported into a country form the port for the importer. He takes care of all the

formalities to be completed at the port. The importer will hand over the import

documents such bill of leading etc, to the clearing agent. The clearing agent will pay the

import duty, take delivery of the imported goods and will transport them to the

importers destination. For all these services, he will charge a commission. A

forwarding agent, on the other hand, completes the export formalities for an exporter.

Underwriters: an underwriter is special agents who guarantee subscription for a publicissue of shares or debentures by companies. They will sell prospectuses of companies,

and obtain subscriptions from the public for the company. If the entire issue is not

taken up by the public they will themselves subscribe for the unsubscribed portion of the

public issue.

Warehouse keepers: the owner of a warehouse may act a s an agent of ane who wants to

keep his goods in a warehouse.

Example: Application for Agency:

We came across your advertisement in The Hindu dated 25th

June 2011 wanting agents in thedistrict of Thanjavur. We are an established concern in Thanjavur, supplying hardware

products for house construction, mills industries and agriculture. We have been dealing in

these lines for more than 10 years.

We are interested in taking up agency for your motors of various H.P.S meant for various

purposes. Our financial position is very sound which can be verified by contacting our bankers:

a) Indian Over-Seas bank. Old bus stand. And.

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2. There are banking correspondence that relates to operations in accounts of customers

deposit, collection and payment of cheques, drafts, bills etc.

3. There are banking correspondence that relates to Loans and Advances including

overdrafts, cash-credits, demand and term loans, discounting of bills, letters of credit,

guarantees etc.

4. There are banking correspondence that relates to subsidiary or ancillary services like

remittances, safe deposit lockers, agency services, supplying credit or status information

and travelers cheques etc.

They can be discussed in detail as under: -

Customers Account: The relationship between customer and banker develops when a customer

opens his account with the bank. All other services offered by banks are based on it. The

customer has to fill in the Account Opening Form for opening an account in the bank by

supplying specimen signatures and giving introduction. The bank account may be introduced by

anyone who is either already a customer of the bank or well known to the bank.

Types of Bank Account: - The customers accounts can be current accounts, saving bank

accounts, fixed/term deposit accounts or other deposit accounts. There are different set of rules

for different type of accounts in individual bank.

Current account works best for traders and other business people so that they can freely operate

upon the accounts by numerous transactions in a single day. In current account, no interest is

paid on a current account of a customer but some charges are levied by bank in proportion to

the pages of ledger filed in.

Saving Bank Account works best for service class peoples as the number of transactions are few

and irregular. The bank offers some interest to the saving bank account holders on the credit

balances maintained with the bank between the close of 12th day and the last day of each

calendar month. The other deposit accounts are those where the transactions are less and more

interest is allowed by the bank.

There is also facility of transfer of accounts from one branch to branch or place in the bank. The

bank account can also be closed anytime depending upon the rules of the concerned bank.

GENERAL TRADERS

15, Kamla Market

Delhi-110006

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Ref.No. GTL/Bank/98/2314 10th May 1998

The Manager

Bank of India

Chandni Chowk

Delhi

Dear Sir,

We wish to open a current account in our companys name with your esteemed branch.

We request you to; please let us know as to what formalities are to be fulfilled for this purpose.

We would like to bring it to your kind notice that our company is a sole proprietor concern.

Presently we are not dealing with any other nationalized bank anywhere in Delhi.

Please give us necessary account opening forms and also let us know the other formalities to be

fulfilled for opening an account with you.

We anticipate an early compliance in this matter.

Yours Faithfully,

For GENERAL TRADERS

Sole Proprietor

Specimen of Banks Reply

BANK OF INDIA

Chandni Chowk Branch, Delhi

B.O. Chandni Chowk

Delhi-110006

Ref. No. BOI/H/Gen/8965 15th May 1998

Dear Sir,

This letter is in reference to your letter No. Ref. No. GTL/Bank/98/2314 dated 10th May 1998.

We are enclosing herewith the required Account Opening Form (A.O.F) for opening a current

account for sole proprietor firms or companies. It will be advisable that you visit us during

business hours along with A.O.F with the rubber stamp of your firm to be affixed on it.

You are requested to sign in the form in our presence and the account has to be introduced by a

person having an account with us.

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Yours Faithfully,

Branch Manager

Enc: as above

Specimen of Letter for Customers request for Pass Book or Statement of Account

KHANNA BROTHERS

25, Kirti Nagar,

New Delhi -110015

Ref.No. KBR/Accts/99/5612 20th April 1999

The Manager,

Krishna International Bank,

South Extension Part-2

New Delhi

Dear Sir,

Re: Our current A/c No. 16723 with you.

We want to bring it to your kind notice that we havent received the statement of account for

the above mentioned current account. We have opened current account with your bank for more

than three months and have a heavy turnover in the accounts.

It would be difficult for us to tally our bank accounts in the absence of up to date bank entries

so we request you to please send us the statement of our account with your bank with latest up

to date entries.

We would also like to request to you for sending us statement of our accounts regularly every

month in the future.

Yours Faithfully,

For KHANNA BROTHERSProprietor

Banks Reply

KRISHNA INTERNATIONAL BANK

South Extension Part-2, New Delhi

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B.O South Extension Part-2

New Delhi

No. CA/Misc/99/8123 25th April 1999

M/s Khanna Brothers

25, Kirti Nagar

New Delhi -110015

Dear Sirs,

Ref. No. KBR/Accts/99/5612 dated 20th April 1999

Reg. Current A/c No. 16723

With reference to the above mentioned details, we are enclosing herewith upto date statement

of your current account. We have also taken notice of your request of sending statement

regularly month-wise in the future.

Please acknowledge receipt.

Yours Faithfully,

Authorized Official

Enc: as above

Operations on Customers Accounts: - After the opening of bank account, the customer operates

it by way of depositing cash, cheques, bills etc in the account and withdrawing amount by

issuing and drawing cheques or otherwise. There are many types of correspondence that take

place during this course of operation on accounts between the bank and customer.

Specimen of letter for customer notifying delay in collection of cheques, drafts, bills etc

deposited in account

MAX INDIA LIMITED

12 floor Devika TowersNehru Place

New Delhi

Ref.: MIL/Accts/Bank/1002 24th March 2007

Dear Sir,

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Our Current Account No. 456 with you

This is to inform you that we deposited two cheques for Rs. 5000/- and Rs. 7000/ respectively on

10th March 2007, for credit to our above said account. After checking our Account Statement of

24th March 2007, we find that these amounts have not be credited to our account. We would

like to know the reason for delay as they were local cheques and the normal course of

realization is three to five days for local cheques. It is now past 14 days that the cheques have

not been realized so far.

We, therefore, request you to kindly arrange for the early realization without any further

delayo as we need the abovesaid amount for the clearance of our pending bills of the company.

We hope you will do the needful as early as possible.

Yours faithfully,

For MAX INDIA LTD.

Accounts Manager

Stop Payment Instructions

The instructions given by the customer to the bank regarding the stop payment of a particular

cheque giving full details of the cheque and to exercise proper precaution in the matter.

While writing the letter to the bank regarding the stop payment of the cheque the following

points should be kept in mind they are:

1) Explain the reason for the stop payment, whether lost or misplaced or the payment to be

withheld.

2) The exact particulars of the cheque must be given such as cheque number, date, amount

and name of payee, etc.

3) Give a firm request to stop its payment and for the proper precautions be taken to deal with

this matter.

4) Mention the date and time of writing the letter to the bank on the letter.5) Request the bank to acknowledge the receipt of your letter for future reference.

Customers request for Stop Payment of a Cheque

XYZ LTD.

5, Ansari Road

Delhi

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Ref.:XYZ/bank/245 20th March 2007

The Manager,

Bank of India,

Tilak Nagar Branch,

New Delhi.

Dear Sir,

Stop Payment-Cheque No. 450623 dated 21st March 2007 of Rs. 5000/-

We request you to kindly stop the payment of our cheque no. 450623 dated 21st March 2007 for

Rs. 5000/- favouring M/s ABC Consulting Services issued in our current account No. 456 with

you.

Please acknowledge receipt.

Yours faithfully,

For XYZ Ltd.

Accounts Assistant

STANDING INSTRUCTIONS:

When any customer requests his bank in writing for making certain payments on regular basis

for insurance premium, rent or for any other purpose then they are called STANDING

INSTRUCTIONS. In banks there are generally printed forms for carrying out standing

instructions.

There are some important pre-requisites for standing instructions and they are as follows:

1) The customer should have account in the bank current account or saving account in

giving standard instructions.

2) There has to be sufficient credit balance so as to enable Bank to debit the amount and

remit.3) The customer should specify the amount to be paid by the bank so that it could be easily

remitted every month. It is not possible for the bank to remit the different amounts every

month.

4) The bank should be given an authority to debit the customers account.

5) The payment to be remitted or effected by the bank should be at regular intervals

weekly, fortnightly, monthly or quarterly.

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Advantages of Standing Instructions Disadvantages of Standing Instructions

They are very useful in those cases where

regular payments of the same amount are

to be made through the bank. It saves

customers time and botheration of

visiting bank and giving letters everytime.

They ensures timely regular payment of

amount and avoids any delay because the

bank effects the payment on due date

every time automatically.

They are of no use where sufficient or

adequate credit balance cannot be

arranged or maintained by the customer

because in such case the standing

instructions cannot be implied by thebank.

There are times when payments are

delayed due to rush of work with the bank

or due to their staffs negligence. It may

results in undesired complications and

problems to the customer.

Essentials for drafting Standard Instructions: -

i. The customer should request the bank for making payments on his behalf.

ii. The customer should give complete details about the payments like policy number, perioddate of payment, specific amount, name of payee etc.

iii. The customer should assure the bank that he will maintain sufficient credit balance in his

saving or current account on or before the due date.

iv. The customer should give his account number and put his signatures as on banks record so

that the bank is authorized to debit account and effect remittance.

Customer giving Standing Instructions for Payment of Shop Rent and School Fees

Dated

The Branch Manager,

Union Bank of India,

Nehru Place,

New Delhi

Dear Sir,

Re: Standing Instructions

Kindly arrange to pay the following amounts to debit of my saving bank account No. 23123

with your branch: -

Name of Payee Amount Date On A/c of

1. Mr. Ravi Kumar Rs.5000/- On or before 10th of Rent for shop

every month. 3, Karol Bagh, N.Delhi

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2. Principal S.D School Rs. 1200/- On or before 15th of School Fees of Master

Ram Nagar, N.Delhi every month. Vijay of Class IV

I assure you to maintain sufficient credit balance in my above mentioned account on or before

the dates of payment. Please make the payments regularly through my account. If there are

any extra bank charges then they can also be debited from account.

Please acknowledge receipt.

Yours Faithfully,

(M.L.MUNSHI)

IMPORT& EXPORTCORRESPONDENCE:

The term import is derived from the conceptual meaning as to bring in the goods and services

into the port of a country. The buyer of such goods and services is referred to an "importer" who

is based in the country of import whereas the overseas based seller is referred to as an

"exporter". Thus an import is any good (e.g. a commodity) or service brought in from one

country to another country in a legitimate fashion, typically for use in trade. It is a good that is

brought in from another country for sale.[2] Import goods or services are provided to domestic

consumers by foreign producers. An import in the receiving country is an export to the sending

country

The term export is derived from the conceptual meaning as to ship the goods and services out of

the port of a country. The seller of such goods and services is referred to as an "exporter" who is

based in the country of export whereas the overseas based buyer is referred to as an "importer".

In International Trade, "exports" refers to selling goods and services produced in home country

to other markets. Any good or commodity, transported from one country to another country in a

legitimate fashion, typically for use in trade. Export goods or services are provided to foreign

consumers by domestic producers.

Procedure of Export: a) Receipt of Enquiries.

b) Receipt o indent or order.

c) Enquiry about credit.

d) Packing and forwarding.

e) Obtaining shipping order.

f) Compliance with foreign exchange reg